The upward movement last week failed to break the final descending medium-term structure. This indicates a high probability of formation of the medium-term accumulation zone.
Medium-term plan.
The growth of the GBPJPY pair in the past week allowed the formation of a local accumulation zone, where the main targets are the two-week short-term. The determined resistance is the NKZ 151.10-150.72. While the pair is trading below this zone, the probability of updating the monthly minimum is 70%. The target of the downward movement is the NKZ 144.85-144.71, which intersects with the monthly control zone of October at 144.62-143.94. Reaching this zone will complete the next cycle of the bearish trend.
The upward movement to the weekly short-term will open an opportunity to obtain favorable prices for selling the instrument. Fixing above the 151.10 level will start a new phase of an upward movement with an initial target to reach the September highs.
Intraday plan.
Last week, the pair reached the NSC 1/2 149.01-148.82, which enables us to see growth in supply and the formation of a downward pattern. At the beginning of this week, the pair tests this zone again. the priority will remain moving downwards until there is a consolidation above the specified zone at one of the American sessions. The probability of renewal of the monthly minimum is 70%. Fixing above the 149.01 level will change the pattern and the target will turn to the upper weekly fault at 151.10-1.50.72.
Daytime CP is the daytime control zone. The zone formed by important data from the futures market, which change several times a year.
Weekly CP is the weekly control zone. The zone formed by important futures market marks, which change several times a year.
Monthly CP is the monthly control zone. The zone is a reflection of the average volatility over the past year.